Manitoba unveils tax credit for investors

The Manitoba government has introduced a mineral exploration tax credit and renewed two other exploration programs for three years.

The tax credit will provide a 10% non-refundable tax credit to persons in the province who invest in flow-through shares to finance exploration projects in Manitoba. This credit will be used in conjunction with the 15% federal exploration tax credit, providing investors with a combined tax credit rate of roughly 23.5%.

“[The tax credit] sends the right message to investors across Canada, even if they are ineligible for the Manitoba tax credit by virtue of residency outside the province,” says David Comba, director of issues management for the Prospectors & Developers Association of Canada. “Manitoba is open for business. This move will further the progress of the mining industry toward bringing some exploration companies back to Canada.”

Meanwhile, the Mineral Exploration Assistance Program (MEAP) and the Manitoba Prospectors Assistance Program (MPAP) have been renewed for 3-year terms. Last year, both programs provided the province’s mining and minerals sector with more than $2.7 million in exploration assistance. Spinoffs from the programs are valued at about $27 million.

In the fall of 2001, MEAP provided assistance to 37 companies, including three majors and 34 juniors. The companies are exploring for diamonds, gold, platinum group metals, zinc, copper, nickel, silver, tantalum and other metals. Also, MPAP provided assistance to 22 prospectors who conducted exploration in Manitoba in 2001.

“These two programs have proved to be very successful and have stimulated much of the diamond exploration currently under way in the province,” says MaryAnn Mihychuk, the province’s minister of industry, trade and mines. “Exploration is critical to the continued viability of our mining industry and the communities it supports.”

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